Think about the most successful people you know. What's one thing they have in common? Probably this: They've built a network of contacts that provides support, information and business referrals. They have mastered the art and science of networking, and business flows to them almost as a matter of course.
It took those successful networkers years of hard work to build their networks. But many people don’t understand networking basics.
Misconceptions about networking are widespread, even among business professionals. Before you can commit yourself to the task of building a healthy network, you probably need to overcome at least one of these three major networking misconceptions.
1. "I can’t network if I'm not an outgoing person."
Go ahead and breathe a sigh of relief -- you don't have to become "Mr. Public Speaker" to be a successful networker. Most people naturally develop a certain level of comfort in dealing with customers, vendors, and others in their day-to-day transactions.
There are many techniques that can make the process a whole lot easier -- especially for those who consider themselves a bit introverted. For example, volunteering to be an ambassador or visitor host for a local business networking event can be a great way to get involved without feeling out of place.
When you have guests at your house or office, what do you do? You engage them; make them feel comfortable; you offer them something to drink. What you don't do is stand by yourself sulking about how you hate meeting new people. By serving as a visitor host at your local chamber event, you effectively become the host of the party. Try it, you'll find it much easier to meet and talk to new people.
2. "Person-to-person referral business is old-fashioned."
Yes, networking has been around a long time. It used to be the way that most businesses operated. In a small community everybody knows everybody, people do business with the people they trust, and they recommend these businesses to their friends.
Today, most people do business on a larger scale, over a broader customer base and geographic area. The personal connections of the old-style community, and the trust that went with them, is mostly gone. That's why a system for generating referrals among a group of professionals who trust one another is so important, and it's why referral networking is not only the way of the past but the wave of the future. It's a cost-effective strategy with a long-term payoff. It's where business marketing is going, and it's where you need to go if you're going to stay in the game. As the great Wayne Gretzky's father said, "skate to where the puck is going, not to where it has been."
3. "Networking is not a hard science. Its return on investment can’t be measured."
I once suggested to the dean of a large university that the business curriculum should include courses in networking. His response, "My professors would never teach that material here. It's all soft science."
I shouldn't have been surprised. I've run into this attitude many times. We give people bachelor's degrees in business, but we teach them little to nothing about the one subject that virtually every entrepreneur says is critical -- networking and social capital. Why don't business schools teach this subject? I think it's because most are made up of professors who've never owned a business. Almost everything they know about running a business they learned from books and consulting.
Can you imagine a law course taught by someone who's not an attorney, or an accounting course taught by anyone with no direct accounting experience? Yet we put business professors in colleges with little or no firsthand experience in the field. It's no wonder that a subject so critically important to business people would be so completely missed by business schools.
The science of networking is finally being codified and structured. Business schools around the world need to wake up and start teaching this curriculum. Schools with vision, foresight, and the ability to act swiftly (the way business professors say businesses should act) will be positioning themselves as leaders in education by truly understanding and responding to the needs of today's businesses.
At the end of our conversation, I asked the dean, "How are courses on leadership any less a soft science than networking?" He didn't have an answer.
Successful entrepreneurs understand the importance of a strong network, and are willing to put in the time it takes to develop fruitful connections. If any of these misconceptions are holding you back, it's time to correct it with the tips provided -- and watch your business grow.
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Comments:
People still very much rely on recommendations from people they trust and oftentimes make decisions based on those referrals. We created a tool to help encourage word of mouth referrals, and to empower people to share their positive experiences with their networks. Referral networking is definitely the wave of the future.
Ivan - great points! I think it's critical, especially in our current economy, to take business networking efforts seriously. That means not only honing your skill at face-to-face interactions, but also doing a good job of tracking your ROI from various networking organizations. Time is a valuable asset, and the smart business owner never underestimates its value! I wholeheartedly agree that networking should be taught in more business schools!
As an introvert entrepreneur, I really appreciate your first tip, Ivan. Even without having an official role at an event, an introvert can take on the mental role of host. Someone uncomfortable with the old-fashioned vision of networking (shaking as many hands as possible, passing out all of your biz cards) can focus on making others welcome by smiling, asking questions and drawing out those who look like they may feel. As Andrea says, "just be yourself"; don't try to be an extrovert. Be curious and open, and focus on a few deeper connections rather than "working the room." Like others, I don't get the statement "The personal connections of the old-style community, and the trust that went with them, is mostly gone." If anything, I think personal connections - and the continuum of know-like-trust - are even more important. I also don't resonate with "most people do business on a larger scale, over a broader customer base and geographic area." Most? Hmmm...the successful entrepreneurs I know have a tightly defined customer base (niche)... and that makes it SO much easier to refer them to others. Your point about B-schools is interesting. I'm not a B-school grad (music school, actually) but I completely agree that courses on how to make connections and build social capital (whether it's to get a job or start a biz) should be required.
Gen X and Y no longer buy into the notion of face to face networking.The fact that they don't need to see eye to eye to promote themselves and close deals would mean more time saving for other important activities in business.As much as I want to agree with them, as someone in between baby boomer and gen X myself, I believe in both school of thoughts.Both online and offline networking style and skills are relevant for any entrepreneurs to be seen as modern and up to date.
It's a good opener to networking but hopefully you'll have a follow up article about how to network with social media and which ones are good for each niche. LinkedIn has hundreds of groups and Twitter users have thousands of followers but many of the people following don't get very much involved so niches if not sub-niches are very important for targeted networking to work and receive a good ROI. Social Media Marketing Firm in NYC
I like this article. It brought out some good points, very clever and ironic that some of the comments or commentators might want to listen to your podcasts to understand a little better.
Ivan, good article that matches your headline not close on your subtitle at all. Three big misconceptions sure! Well done on taht front.But where's the info on finding the right contacts to provide business opportunities? What if the article title was changed to: Three big lies about networking and get past them - then you 've got a winner.
I agree with Brian on some points, at the age of 50 I also like personal interactions though have found web meetings have removed the need to travel from our business totally over the past 7 years when we have not personally seen one customer face to face. Paul King wiredcontact
As introvert entrepreneur, I found your article has been spot on. It is difficult but possible to be a successful marketer even if you are not a people person. WIth the invention of social media such as twitter and facebook, it become easier every day to network with others.
I have found over the past 2 months that face to face networking will bring you far better results than trying to network online, nothing beats one on one interaction with people. It gives them a chance to get to know you better and people like the personal feel a lot better. It definitely gets you better results.
Networking is an art and in today's world a lot easier thanx to things like Facebook, LinkedIn, Plaxo, etc. And even with those tools and all their benefits, an "old-fashioned" handwritten note or a personal phone call goes a long long way. Live With Intention, DrBillToth.com/blog
I would strongly agree with Jgeorge on this ... from where I see it networking and person-to-person referral is interconnecting with each other ... it is either person-to-person after the networking or before the networking ... I probably interpreting that section wrongly ... but the way it been presented ... and the choice of words ... it doesn't connect with my believe ..
Person-to-Person referral busienss is old-fasioned? are you sure ? I disagree, Paul Zane Pilzer one of the worlds leading financial forecasters would disagree also. The fastest company to hit a Billion doallars in The United States of America is based on Referral Marketing meaning they hardly spent any money on advertisment. Referral marketing is alive and kicking, it's traditional business thats old fasioned.
Hmmm, don't know how you figure "The personal connections of the old-style community, and the trust that went with them, is mostly gone." Really? I don't know where or how you network but the old-style community is alive and well and people still do business with someone they can shake hands with and look in the eye. Doing business on a larger scale (online?) doesn't exactly translate to a broader customer base unless you're selling a $20-$50 product. Maybe I just didn't get your point but I do find that statement a bit surprising coming from the Chairman of BNI.
I very much resonate with the idea that you don't need to be an outgoing person to network. I just recently have started to get "out there" in the networking world and although it is uncomfortable for me at times because I consider myself to be a bit introverted, I feel that as I get out and practice more and more it gets easier and easier. If you know what you have to offer and feel strongly that it will help others and just be yourself things will fall together. It also helps to be prepared before you attend an event.